This is an excerpt from an article in Barron's by M. Mayer, guest scholar at the Brookings Institution and author of numerous books about finance and banking on April 14, 2008.
The truth is that the Fed had plenty of authority to take the steps that would have avoided today's dangers and its own embarrassments. The problem was that the Fed lacked the will to supervise. Before we can restore the self-confidence of the market, we will need to create a Federal reserve that believes in its own regulatory mission more than it believes in prudence at the banks.
It is a classic. When the bureaucracy fails it seeks more power (and more people and more money) to get the job done. This is what is happening right now as proposals are submitted in Congress to take care of future problems. This is how power is transferred from the people to a few bureaucrats.
The country has a financial problem because the authorities were asleep at the wheel.
More on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
No comments:
Post a Comment